Financial Analysis: LiveWorld (OTCMKTS:LVWD) versus Visa (OTCMKTS:V)

LiveWorld (OTCMKTS:LVWD) and Visa (NYSE:V) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Profitability

This table compares LiveWorld and Visa’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LiveWorld -7.79% -68.06% -29.36%
Visa 53.43% 41.04% 16.87%

Analyst Ratings

This is a summary of recent ratings for LiveWorld and Visa, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LiveWorld 0 0 0 0 N/A
Visa 0 1 22 0 2.96

Visa has a consensus price target of $196.13, indicating a potential upside of 9.42%. Given Visa’s higher probable upside, analysts clearly believe Visa is more favorable than LiveWorld.

Insider & Institutional Ownership

81.3% of Visa shares are held by institutional investors. 16.3% of LiveWorld shares are held by company insiders. Comparatively, 0.2% of Visa shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares LiveWorld and Visa’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LiveWorld $7.71 million 0.04 -$640,000.00 N/A N/A
Visa $20.61 billion 17.25 $10.30 billion $4.61 38.88

Visa has higher revenue and earnings than LiveWorld.

Risk & Volatility

LiveWorld has a beta of 2.33, indicating that its stock price is 133% more volatile than the S&P 500. Comparatively, Visa has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Dividends

Visa pays an annual dividend of $1.00 per share and has a dividend yield of 0.6%. LiveWorld does not pay a dividend. Visa pays out 21.7% of its earnings in the form of a dividend. Visa has raised its dividend for 10 consecutive years.

Summary

Visa beats LiveWorld on 11 of the 14 factors compared between the two stocks.

About LiveWorld

LiveWorld, Inc. provides social media solutions for global brands. The company is involved in developing strategy, creating and publishing content, engaging customers, moderating content, managing crises, and gleaning insight from social media. It offers engagement services, including social architecture, audit, and competitive analysis; content programming plans and authoring; day-to-day online engagement and community management; social media crisis management; highlights and custom reporting; and strategy consulting services. The company also provides content moderation services, such as moderation plans and guidelines, moderator selection and training, hourly content moderation, moderation management, moderation program model, and highlights and custom reporting. In addition, it offers insight services comprising setup, customization, training, and support; management, tagging, and analysis; and listening and monitoring of the social Web. Further, it provides listening services that include brand monitoring, social Web listening, market research listening programs, customizable listening track offerings, human management and analysis, and real-time monitoring or 30-day rear-view listening reports. Additionally, the company offers LiveEngage, a social content marketing suite that enables brand managers or customer support agents to directly respond to escalated content; LiveMod, a content moderation software enables human moderators to accept, reject, and escalate content in context; and LiveInsight software, an analytics and insights solution designed to engage and scale human review and analysis. It serves various industries, including retail, consumer packaged goods, pharmaceutical, financial and travel services, healthcare, automotive, technology, and media and entertainment. The company was formerly known as Talk City, Inc. and changed its name to Liveworld, Inc. in May 2001. Liveworld, Inc. was founded in 1996 and is headquartered in San Jose, California.

About Visa

Visa Inc. operates as a payments technology company worldwide. The company facilitates commerce through the transfer of value and information among consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It operates VisaNet, a processing network that enables authorization, clearing, and settlement of payment transactions; and offers fraud protection for account holders and assured payment for merchants. In addition, the company offers card products, as well as value-added services. It provides its services under the Visa, Visa Electron, Interlink, V PAY, and PLUS brands. Visa Inc. was incorporated in 2007 and is headquartered in San Francisco, California.

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